Vodafone ups ante on bid

A Vodafone AirTouch takeover of German giant Mannesmann today came closer today as the British company said it was prepared to increase its giant £93 billion offer. But Chris Gent, chief executive said he would only consider a modest increase in the share exchange ratio if Mannesmann recommended the offer.

Vodafone said: 'There will be no increase in the exchange ratio ... in the absence of a recommendation from Mannesmann or a higher competing offer.' And it added that even if agreement could be reached it would only offer 'a modest increase' in the stake awarded to Mannesmann shareholders.

Press reports earlier on Thursday saying that Vodafone CEO Chris Gent was willing to buy Mannesmann's agreement had raised expectations of an agreed deal betweeen the two telecommunications giants.

The Press Association reported earlier today that Vodafone would consider offering Mannesmann shareholders as much as 49% of the enlarged group - ahead of the 47.2% now on the table, he said. But the olive branch fell way short of extending to the 58.5% share demanded by Mannesmann executives for a deal to go ahead. Mannesmann chief executive Klaus Esser said he would be willing to talk to Vodafone if the 58.5% share was offered.

Chris Gent, chief executive of Vodafone said: 'We remain hopeful that Mannesmann will enter into a serious negotiation but, so far, their position has been completely unrealistic and unjustified.' He added that Vodafone offer was already 'very generous' and urged Mannesmann shareholders to agree to the deal.

But supporters of Mannesmann's independence may be hoping the German group can derail the Vodafone offer by agreeing a deal with French media and utilities group Vivendi. The German company is currently in talks with Vivendi over closer cooperation. It has been speculated the talks could centre on Cegetel, the French mobile company which is 44% owned by Vivendi and in which Mannesmann also has a 15% stake.